Income Tax (Rates) Amendment Act 1984 (Cth)

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Income Tax (Rates) Amendment Act 1984

No. 98 of 1984

An Act to amend the Income Tax (Rates) Act 1982

[Assented to 10 October 1984]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax (Rates) Amendment Act 1984.

(2) The Income Tax (Rates) Act 19821is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Title

3. The title of the Principal Act is amended by omitting “and superannuation funds” and substituting “, superannuation funds and certain other trusts”.

Interpretation

4. Section 3 of the Principal Act is amended—

(a) by omitting “or” from paragraph (c) of the definition of “tax” in sub-section (1); and

(b) by inserting after paragraph (c) of the definition of “tax” in sub-section (1) the following paragraph:

“(ca) income tax payable by a person in the capacity of a trustee of an ineligible approved deposit fund, within the meaning of Division 9b of Part III of the Assessment Act, in relation to the year of income; or”.

Heading to Part III

5. The heading to Part III of the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Application of Part

6. Section 12 of the Principal Act is amended by omitting “and for all subsequent financial years”.

7. After Part III of the Principal Act the following Parts are inserted:

“PART IV—FINANCIAL YEAR COMMENCING ON 1 JULY 1984

“Division 1Application of Part

Application of Part

“17. The rates of tax declared by this Part, and the notional rates declared by this Part for the purposes of section 156 of the Assessment Act, apply for the financial year commencing on 1 July 1984.

“Division 2Rates of tax and notional rates

Rates of tax and notional rates

“18. (1) Except as otherwise provided by this Part, the rates of tax are as set out in Schedule 13.

“(2) The notional rates for the purposes of section 156 of the Assessment Act are as set out in Schedule 14.

“(3) For every dollar of so much of the taxable income of a taxpayer as is equal to the deemed taxable income from primary production, the rate of complementary tax for the purposes of sub-section 156 (4a) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that sub-section by the number of whole dollars in the taxable income of the taxpayer.

“(4) For every dollar of so much of the net income of a trust estate as is equal to the deemed net income from primary production, the rate of complementary tax for the purposes of sub-section 156 (5a) of the Assessment

Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that sub-section by the number of whole dollars in the eligible net income of the trust estate.

“(5) Subject to sections 19 and 21, the rate of tax in respect of a taxable income in any case where section 59ab, 86 or 158d of the Assessment Act applies is as set out in Schedule 15.

“(6) Subject to sections 19 and 21, the rates of tax payable by a trustee in pursuance of section 98 or 99 of the Assessment Act are as set out in Schedule 16.

“(7) The rate of further tax payable by a person in pursuance of sub-section 94 (9) of the Assessment Act is—

(a) in respect of the part of the taxable income of the person that is the relevant part of that taxable income for the purposes of sub-sections 94 (10a) and (10b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this sub-section, sub-section (3) and any rebate or credit to which the person is entitled, would be payable by the person in respect of the taxable income of the person; and

c is the number of whole dollars in the taxable income of the person; and

(b) in respect of the part of the taxable income of the person that is the prescribed part of that taxable income for the purposes of sub-section 94 (10b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this sub-section, sub-section (3) and any rebate or credit to which the person is entitled, would be payable by the person in respect of the taxable income of the person if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by the person on the taxable income of the person; and

c is the number of whole dollars in the taxable income of the person.

“(8) The rate of further tax payable by a trustee in pursuance of sub-section 94 (11) or (12) of the Assessment Act is—

(a) in respect of the part of the net income of the trust estate that is the relevant part of that net income for the purposes of sub-sections

94 (12a) and (12b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this sub-section, sub-section (4) and any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income; and

(b) in respect of the part of the net income of the trust estate that is the prescribed part of that net income for the purposes of sub-section 94 (12b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this sub-section, sub-section (4) and any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income.

“(9) The rate of tax payable by a trustee in respect of the net income of a trust estate in respect of which the trustee is liable, in pursuance of section 99a of the Assessment Act, to be assessed and to pay tax is 60%.

“Division 3Resident taxpayers, resident beneficiaries and resident trust estates

Rates of tax where Division 6aa of Part III of the Assessment Act applies

“19. (1) The rates of tax in respect of the taxable income of a resident taxpayer—

(a) who is a prescribed person in relation to the year of income for the purposes of Division 6aa of Part III of the Assessment Act; and

(b) who has, for the purposes of that Division, an eligible taxable income of an amount exceeding $416,

are as set out in Part I of Schedule 17.

“(2) Where the eligible taxable income of a resident taxpayer for the purposes of Division 6aa of Part III of the Assessment Act exceeds $416 but does not exceed $1,372, the amount of tax payable under sub-section (1) in respect of that eligible taxable income shall not exceed—

(a) 66% of the amount by which that eligible taxable income exceeds $416; or

(b) the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part I of Schedule 13 or Part I of Schedule 15, as the case requires, were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income,

whichever is the greater.

“(3) Where—

(a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;

(b) Division 6aa of Part III of the Assessment Act applies to a part of that share; and

(c) the part of that share to which that Division applies exceeds $416,

the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part I of Schedule 18.

“(4) Where—

(a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;

(b) Division 6aa of Part III of the Assessment Act applies to a part of that share;

(c) the part of that share to which that Division applies does not exceed $416;

(d) Division 6aa of Part III of the Assessment Act also applies to a part of the share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates; and

(e) the sum of the part referred to in paragraph (b) and the part or parts referred to in paragraph (d) exceeds $416,

the trustee of the trust estate referred to in paragraph (a) is liable to pay tax in respect of the share of the net income of the trust estate referred to in that paragraph at the rates set out in Part I of Schedule 18.

“(5) Where—

(a) the amount of tax that a trustee of a trust estate is liable to pay in respect of the share of a resident beneficiary of the net income of the

trust estate is, by virtue of sub-section (4), to be calculated in accordance with Part I of Schedule 18; and

(b) the sum of—

(i) the part of that share to which Division 6aa of Part III of the Assessment Act applies; and

(ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies,

does not exceed $1,372,

the tax that, apart from this sub-section, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.

“(6) Subject to sub-section (7), where—

(a) the trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;

(b) Division 6aa of Part III of the Assessment Act applies to a part (in this sub-section referred to as the ‘eligible part’) of that share; and

(c) the eligible part of that share exceeds $416 but does not exceed $1,372,

the amount of tax payable under sub-section (3) in respect of the eligible part of that share shall not exceed—

(d) 66% of the amount by which the eligible part of that share exceeds $416; or

(e) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part I of Schedule 16 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share,

whichever is the greater.

“(7) Sub-section (6) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division 6aa of Part III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.

“(8) Where—

(a) by reason of the application of sub-section (7), sub-section (6) does not apply in relation to the share of a beneficiary of the net income of a trust estate in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act; and

(b) the sum of—

(i) the part of that share to which Division 6aa of Part III of the Assessment Act applies; and

(ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies,

does not exceed $1,372,

the tax that, apart from this sub-section, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.

“(9) In forming an opinion for the purposes of sub-section (5) or (8) (in this sub-section referred to as the ‘relevant sub-section’) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to—

(a) any limitation that would be applicable under sub-section (6) on the amount of tax that would be payable by a trustee in accordance with Part I of Schedule 18 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (b) of the relevant sub-section if—

(i) Division 6aa of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (b) of the relevant sub-section; and

(ii) that share were a share of a resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;

(b) the amount of any reduction previously granted by the Commissioner in pursuance of sub-section (5) or (8) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and

(c) such other matters (if any) as the Commissioner thinks fit.

Limitation on tax payable by certain trustees

“20. (1) Where—

(a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;

(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and

(c) that net income or that part of the net income of the trust estate does not exceed $416,

no tax is payable under sub-section 18 (6) in respect of that net income or that part of the net income, as the case may be.

“(2) Where—

(a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;

(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and

(c) that net income or that part of the net income of the trust estate exceeds $416 but does not exceed $891,

the amount of the tax payable by the trustee under sub-section 18 (6) in respect of that net income or that part of the net income shall not exceed 50% of the amount by which that net income or that part of the net income, as the case may be, exceeds $416, less any rebate or credit to which the trustee is entitled.

“Division 4Non-resident taxpayers, non-resident beneficiaries and non-resident trust estates

Rates of tax where Division 6aa of Part III of the Assessment Act applies

“21. (1) The rates of tax in respect of the taxable income of a non-resident taxpayer—

(a) who is a prescribed person in relation to the year of income for the purposes of Division 6aa of Part III of the Assessment Act; and

(b) who has, for the purposes of that Division, an eligible taxable income,

are as set out in Part II of Schedule 17.

“(2) Where the eligible taxable income of a non-resident taxpayer for the purposes of Division 6aa of Part III of the Assessment Act—

(a) does not exceed $416—the amount of tax payable under sub-section (1) in respect of that eligible taxable income shall not exceed—

(i) 30% of that eligible taxable income; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part II of Schedule 13 or Part II of Schedule 15, as the case requires, were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income,

whichever is the greater; or

(b) exceeds $416 but does not exceed $748—the amount of tax payable under sub-section (1) in respect of that eligible taxable income shall not exceed—

(i) the sum of $124.80 and 66% of the amount by which that eligible taxable income exceeds $416; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part II of Schedule 13 or Part II of Schedule 15, as the case requires, were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income,

whichever is the greater.

“(3) Where—

(a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a non-resident beneficiary of the net income of the trust estate; and

(b) Division 6aa of Part III of the Assessment Act applies to a part of that share,

the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part II of Schedule 18.

“(4) Subject to sub-section (5), where—

(a) the trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a non-resident beneficiary of the net income of the trust estate; and

(b) Division 6aa of Part III of the Assessment Act applies to a part (in this sub-section referred to as the ‘eligible part’) of that share,

the amount of tax payable under sub-section (3) in respect of the eligible part of that share shall not exceed—

(c) where the eligible part of that share does not exceed $416—

(i) 30% of the amount of the eligible part of that share; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 16 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share,

whichever is the greater; or

(d) where the eligible part of that share exceeds $416 but does not exceed $748—

(i) the sum of $124.80 and 66% of the amount by which the eligible part of that share exceeds $416; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 16 were applied to that share of that net income the amount of tax that would be, payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share,

whichever is the greater.

“(5) Sub-section (4) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division 6aa of Part III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.

“(6) Where-

(a) by reason of the application of sub-section (5), sub-section (4) does not apply in relation to the share of a beneficiary of the net income of a

trust estate in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act; and

(b) the sum of—

(i) the part of that share to which Division 6aa of Part III of the Assessment Act applies; and

(ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies,

does not exceed $748,

the tax that, apart from this sub-section, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.

“(7) In forming an opinion for the purposes of sub-section (6) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to—

(a) any limitation that would be applicable under sub-section (4) on the amount of tax that would be payable by a trustee in accordance with Part II of Schedule 18 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (6) (b) if—

(i) Division 6aa of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (6) (b); and

(ii) that share were a share of a non-resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;

(b) the amount of any reduction previously granted by the Commissioner in pursuance of sub-section (6) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and

(c) such other matters (if any) as the Commissioner thinks fit.

“PART V—FINANCIAL YEAR COMMENCING ON 1 JULY 1985 AND SUBSEQUENT FINANCIAL YEARS

“Division 1Application of Part

Application of Part

“22. The rates of tax declared by this Part, and the notional rates declared by this Part for the purposes of section 156 of the Assessment Act, apply for the financial year commencing on 1 July 1985 and for all subsequent financial years.

“Division 2Rates of Tax and Notional Rates

Rates of tax and notional rates

“23. (1) Except as otherwise provided by this Part, the rates of tax are as set out in Schedule 19.

“(2) The notional rates for the purposes of section 156 of the Assessment Act are as set out in Schedule 20.

“(3) For every dollar of so much of the taxable income of a taxpayer as is equal to the deemed taxable income from primary production, the rate of complementary tax for the purposes of sub-section 156 (4a) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that sub-section by the number of whole dollars in the taxable income of the taxpayer.

“(4) For every dollar of so much of the net income of a trust estate as is equal to the deemed net income from primary production, the rate of complementary tax for the purposes of sub-section 156 (5a) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that sub-section by the number of whole dollars in the eligible net income of the trust estate.

“(5) Subject to sections 24 and 26, the rate of tax in respect of a taxable income in any case where section 59ab, 86 or 158d of the Assessment Act applies is as set out in Schedule 21.

“(6) Subject to sections 24 and 26, the rates of tax payable by a trustee in pursuance of section 98 or 99 of the Assessment Act are as set out in Schedule 22.

“(7) The rate of further tax payable by a person in pursuance of sub-section 94 (9) of the Assessment Act is—

(a) in respect of the part of the taxable income of the person that is the relevant part of that taxable income for the purposes of sub-sections 94 (10a) and (10b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this sub-section, sub-section (3) and any rebate or credit to which the person is entitled, would be payable by the person in respect of the taxable income of the person; and

c is the number of whole dollars in the taxable income of the person; and

(b) in respect of the part of the taxable income of the person that is the prescribed part of that taxable income for the purposes of sub-section 94 (10b) of the Assessment Act—the amount (if any) per dollar

ascertained in accordance with the formula , where—

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this sub-section, sub-section (3) and any rebate or credit to which the person is entitled, would be payable by the person in respect of the taxable income of the person if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by the person on the taxable income of the person; and

c is the number of whole dollars in the taxable income of the person.

“(8) The rate of further tax payable by a trustee in pursuance of sub-section 94 (11) or (12) of the Assessment Act is—

(a) in respect of the part of the net income of the trust estate that is the relevant part of that income for the purposes of sub-sections 94 (12a) and (12b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this sub-section, sub-section (4) and any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income; and

(b) in respect of the part of the net income of the trust estate that is the prescribed part of that net income for the purposes of sub-section 94 (12b) of the Assessment Act—the amount (if any) per dollar ascertained in accordance with the formula , where—

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this sub-section, sub-section (4) and any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income.

“(9) The rate of tax payable by a trustee in respect of the net income of a trust estate in respect of which the trustee is liable, in pursuance of section 99a of the Assessment Act, to be assessed and to pay tax is 60%.

“Division 3Resident taxpayers, resident beneficiaries and resident trust

estates

Rates of tax where Division 6aa of Part III of the Assessment Act applies

“24. (1) The rates of tax in respect of the taxable income of a resident taxpayer—

(a) who is a prescribed person in relation to the year of income for the purposes of Division 6aa of Part III of the Assessment Act; and

(b) who has, for the purposes of that Division, an eligible taxable income of an amount exceeding $416,

are as set out in Part I of Schedule 23.

“(2) Where the eligible taxable income of a resident taxpayer for the purposes of Division 6aa of Part III of the Assessment Act exceeds $416 but does not exceed $1,372, the amount of tax payable under sub-section (1) in respect of that eligible taxable income shall not exceed—

(a) 66% of the amount by which that eligible taxable income exceeds $416; or

(b) the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part I of Schedule 19 or Part I of Schedule 21, as the case requires, were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income,

whichever is the greater.

“(3) Where—

(a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;

(b) Division 6aa of Part III of the Assessment Act applies to a part of that share; and

(c) the part of that share to which that Division applies exceeds $416,

the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part I of Schedule 24.

“(4) Where—

(a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;

(b) Division 6aa of Part III of the Assessment Act applies to a part of that share;

(c) the part of that share to which that Division applies does not exceed $416;

(d) Division 6aa of Part III of the Assessment Act also applies to a part of the share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates; and

(e) the sum of the part referred to in paragraph (b) and the part or parts referred to in paragraph (d) exceeds $416,

the trustee of the trust estate referred to in paragraph (a) is liable to pay tax in respect of the share of the net income of the trust estate referred to in that paragraph at the rates set out in Part I of Schedule 24.

“(5) Where—

(a) the amount of tax that a trustee of a trust estate is liable to pay in respect of the share of a resident beneficiary of the net income of the trust estate is, by virtue of sub-section (4), to be calculated in accordance with Part I of Schedule 24; and

(b) the sum of—

(i) the part of that share to which Division 6aa of Part III of the Assessment Act applies; and

(ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies,

does not exceed $1,372,

the tax that, apart from this sub-section, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.

“(6) Subject to sub-section (7), where—

(a) the trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;

(b) Division 6aa of Part III of the Assessment Act applies to a part (in this sub-section referred to as the ‘eligible part’) of that share; and

(c) the eligible part of that share exceeds $416 but does not exceed $1,372,

the amount of tax payable under sub-section (3) in respect of the eligible part of that share shall not exceed—

(d) 66% of the amount by which the eligible part of that share exceeds $416; or

(e) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part I of Schedule 22 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied

to that share of that net income reduced by the amount of the eligible part of that share,

whichever is the greater.

“(7) Sub-section (6) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division 6aa of Part III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.

“(8) Where—

(a) by reason of the application of sub-section (7), sub-section (6) does not apply in relation to the share of a beneficiary of the net income of a trust estate in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act; and

(b) the sum of—

(i) the part of that share to which Division 6aaof Part III of the Assessment Act applies; and

(ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies,

does not exceed $1,372,

the tax that, apart from this sub-section, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.

“(9) In forming an opinion for the purposes of sub-section (5) or (8) (in this sub-section referred to as the ‘relevant sub-section’) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to—

(a) any limitation that would be applicable under sub-section (6) on the amount of tax that would be payable by a trustee in accordance with Part I of Schedule 24 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (b) of the relevant sub-section if—

(i) Division 6aa of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (b) of the relevant sub-section; and

(ii) that share were a share of a resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;

(b) the amount of any reduction previously granted by the Commissioner in pursuance of sub-section (5) or (8) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and

(c) such other matters (if any) as the Commissioner thinks fit.

Limitation on tax payable by certain trustees

“25. (1) Where—

(a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;

(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and

(c) that net income or that part of the net income of the trust estate does not exceed $416,

no tax is payable under sub-section 23 (6) in respect of that net income or that part of the net income, as the case may be.

“(2) Where—

(a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;

(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and

(c) that net income or that part of the net income of the trust estate exceeds $416 but does not exceed $832,

the amount of tax payable by the trustee under sub-section 23 (6) in respect of that net income or that part of the net income shall not exceed 50% of the amount by which that net income or that part of the net income, as the case may be, exceeds $416, less any rebate or credit to which the trustee is entitled.

“Division 4Non-resident taxpayers, non-resident beneficiaries and non-resident trust estates

Rates of tax where Division 6aa of Part III of the Assessment Act applies

“26. (1) The rates of tax in respect of the taxable income of a non-resident taxpayer—

(a) who is a prescribed person in relation to the year of income for the purposes of Division 6aa of Part III of the Assessment Act; and

(b) who has, for the purposes of that Division, an eligible taxable income, are as set out in Part II of Schedule 23.

“(2) Where the eligible taxable income of a non-resident taxpayer for the purposes of Division 6aa of Part III of the Assessment Act—

(a) does not exceed $416—the amount of tax payable under sub-section (1) in respect of that eligible taxable income shall not exceed—

(i) 30% of that eligible taxable income; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part II of Schedule 19 or Part II of Schedule 21, as the case requires,

were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income,

whichever is the greater; or

(b) exceeds $416 but does not exceed $748—the amount of tax payable under sub-section (1) in respect of that eligible taxable income shall not exceed—

(i) the sum of $124.80 and 66% of the amount by which that eligible taxable income exceeds $416; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part II of Schedule 19 or Part II of Schedule 21, as the case requires, were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income,

whichever is the greater.

“(3) Where—

(a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a non-resident beneficiary of the net income of the trust estate; and

(b) Division 6aa of Part III of the Assessment Act applies to a part of that share,

the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part II of Schedule 24.

“(4) Subject to sub-section (5), where—

(a) the trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a non-resident beneficiary of the net income of the trust estate; and

(b) Division 6aa of Part III of the Assessment Act applies to a part (in this sub-section referred to as the ‘eligible part’) of that share,

the amount of tax payable under sub-section (3) in respect of the eligible part of that share shall not exceed—

(c) where the eligible part of that share does not exceed $416—

(i) 30% of the amount of the eligible part of that share; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 22 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share,

whichever is the greater; or

(d) where the eligible part of that share exceeds $416 but does not exceed $748—

(i) the sum of $124.80 and 66% of the amount by which the eligible part of that share exceeds $416; or

(ii) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 22 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share,

whichever is the greater.

“(5) Sub-section (4) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division 6aa of Part III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.

“(6) Where—

(a) by reason of the application of sub-section (5), sub-section (4) does not apply in relation to the share of a beneficiary of the net income of a trust estate in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act; and

(b) the sum of—

(i) the part of that share to which Division 6aa of Part III of the Assessment Act applies; and

(ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies,

does not exceed $748,

the tax that, apart from this sub-section, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.

“(7) In forming an opinion for the purposes of sub-section (6) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to—

(a) any limitation that would be applicable under sub-section (4) on the amount of tax that would be payable by a trustee in accordance with Part II of Schedule 24 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (6) (b) if—

(i) Division 6aa of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (6) (b); and

(ii) that share were a share of a non-resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;

(b) the amount of any reduction previously granted by the Commissioner in pursuance of sub-section (6) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and

(c) such other matters (if any) as the Commissioner thinks fit.”.

Heading to Schedule 7

8. The heading to Schedule 7 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Heading to Schedule 8

9. The heading to Schedule 8 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Heading to Schedule 9

10. The heading to Schedule 9 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Heading to Schedule 10

11. The heading to Schedule 10 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Heading to Schedule 11

12. The heading to Schedule 11 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Heading to Schedule 12

13. The heading to Schedule 12 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Schedules

14. The Principal Act is amended by adding at the end thereof the Schedules set out in the Schedule to this Act.

   

SCHEDULE Section 14

Schedules to be added to the Principal Act

SCHEDULE 13 Sub-section 18 (1)

GENERAL RATES OF TAX—FINANCIAL YEAR 1984-85

PART I—RESIDENT TAXPAYERS

The rate of tax in respect of each part of the taxable income of a resident taxpayer specified in column 1 of the following table is:

(a) if a rate is set out in column 2 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 3 or 4 of that table opposite to that reference—the rate so set out in column 2;

(b) if a rate is set out in column 3 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 2 or 4 of that table opposite to that reference—the rate so set out in column 3; and

(c) in any other case—the sum of the rate set out in column 3 and the rate set out in column 4 of that table opposite to the reference to that part of the taxable income:

Column 1

Column 2

Column 3

Column 7

Parts of Taxable Income

Rate per centum (reduced rate)

Rate per centum (standard rate)

Rate per centum (surcharge)

exceeds $4,595 but does not exceed $12,500..................

26.67

Nil

Nil

exceeds $12,500 but does not exceed $19,500................

Nil

30

Nil

exceeds $19,500 but does not exceed $28,000................

Nil

30

16

exceeds $28,000 but does not exceed $35,000................

Nil

30

17.33

exceeds $35,000 but does not exceed $35,788................

Nil

30

25.33

exceeds $35,788....................................................................

Nil

30

30

PART II—NON-RESIDENT TAXPAYERS

The rate of tax in respect of each part of the taxable income of a non-resident taxpayer specified in column 1 of the following table is:

(a) if a rate is set out in column 2 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 3 of that table opposite to that reference—the rate so set out in column 2; and

(b) in any other case—the sum of the rate set out in column 2 and the rate set out in column 3 of that table opposite to the reference to that part of the taxable income:

SCHEDULE—continued

Column 1

Column 2

Column 3

Parts of Taxable Income

Rate per centum (standard rate)

Rate per centum (surcharge)

The part of the taxable income that—

does not exceed $19,500..............................................................................

30

Nil

exceeds $19,500 but does not exceed $28,000.........................................

30

16

exceeds $28,000 but does not exceed $35,000.........................................

30

17.33

exceeds $35,000 but does not exceed $35,788.........................................

30

25.33

exceeds $35,788............................................................................................

30

30

 

SCHEDULE 14 Sub-section 18 (2)

NOTIONAL RATES FOR THE PURPOSES OF SECTION 156 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1984-85

PART I—RESIDENT TAXPAYERS, RESIDENT BENEFICIARIES AND RESIDENT TRUST ESTATES

Division 1Normal Notional Rate

1. This Division applies to the income of a resident taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if Division 16 of Part III of the Assessment Act applies in relation to that income.

2. The notional rate in respect of income to which this Division applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Part I of Schedule 13 were applied to a taxable income equal to the taxpayer’s average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.

Division 2Notional Rates in respect of Certain Trust Income

1. This Division applies—

(a) to a share of a resident beneficiary of the net income of a trust estate, if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of that share; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that share; and

(b) to the net income or a part of the net income of a resident trust estate, if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of that net income, or that part of that net income, of the trust estate; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income.

SCHEDULE—continued

2. The notional rate in respect of income to which this Division applies is—

(a) in a case where the income is—

(i) a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act; or

(ii) the net income or a part of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act, being the net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

the rate that would be calculated in accordance with Division 1 if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act; and

(b) in any other case—the rate that would be calculated under Division 1 in respect of a taxable income equal to the income if—

(i) that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act; and

(ii) the reference in column 1 of the table in Part I of Schedule 13 to the part of the taxable income that exceeds $4,595 but does not exceed $12,500 were a reference to the part of the taxable income that does not exceed $12,500.

PART II—NON-RESIDENT TAXPAYERS, NON-RESIDENT BENEFICIARIES AND NON-RESIDENT TRUST ESTATES

Division 1Normal Notional Rate

1. This Division applies to the income of a non-resident taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if Division 16 of Part III of the Assessment Act applies in relation to that income.

2. The notional rate in respect of income to which this Division applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Part II of Schedule 13 were applied to a taxable income equal to the taxpayer’s average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.

Division 2Notional Rates in respect of Certain Trust Income

1. This Division applies—

(a) to a share of a non-resident beneficiary of the net income of a trust estate if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of that share; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that share; and

(b) to the net income or a part of the net income of a non-resident trust estate if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income.

2. The notional rate in respect of income to which this Division applies is the rate that would be calculated in accordance with Division 1 in respect of a taxable income equal to

SCHEDULE—continued

the income if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act.

 

“SCHEDULE 15 Sub-section 18 (5)

RATES OF TAX BY REFERENCE TO A NOTIONAL INCOME—FINANCIAL YEAR 1984-85

PART 1—RESIDENT TAXPAYERS

For every $1 of the taxable income of a resident taxpayer deriving a notional income, as specified by section 59ab, 86 or 158d of the Assessment Act, the rate of tax is the amount ascertained by dividing the amount of tax that would be payable by the taxpayer under Part 1 of Schedule 13 upon a taxable income equal to his notional income by the number of whole dollars in that notional income.

PART II—NON-RESIDENT TAXPAYERS

For every $1 of the taxable income of a non-resident taxpayer deriving a notional income, as specified by section 59ab, 86 or 158d of the Assessment Act, the rate of tax is the amount ascertained by dividing the amount of tax that would be payable by the taxpayer under Part II of Schedule 13 upon a taxable income equal to his notional income by the number of whole dollars in that notional income.

 

“SCHEDULE 16 Sub-section 18 (6)

RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98 OR 99 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1984-85

PART I—RESIDENT BENEFICIARIES AND RESIDENT TRUST ESTATES

1. In the case of a trustee who is liable to be assessed and to pay tax—

(a) in pursuance of section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of a trust estate; or

(b) in pursuance of section 99 of the Assessment Act in respect of the net income or part of the net income of a resident trust estate, being the net income or part of the net income of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Part I of Schedule 13 or Part I of Schedule 15, as the case requires, if one individual were liable to be assessed and to pay tax on that income as his taxable income.

2. In the case of a trustee who is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of the net income or part of the net income of a resident trust estate, other than income to which clause 1 applies, the rate of tax is the rate that would be payable under Part I of Schedule 13 or Part I of Schedule 15, as the case requires, in respect of a taxable income equal to that net income or that part of the net income if—

(a) one individual were liable to be assessed and to pay tax on that income; and

SCHEDULE—continued

(b) the reference in column 1 of the table in Part I of Schedule 13 to the part of the taxable income that exceeds $4,595 but does not exceed $12,500 were a reference to the part of the taxable income that does not exceed $12,500

PART II—NON-RESIDENT BENEFICIARIES AND NON-RESIDENT TRUST ESTATES

In the case of a trustee who is liable to be assessed and to pay tax—

(a) in pursuance of section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of a trust estate; or

(b) in pursuance of section 99 of the Assessment Act in respect of the net income or part of the net income of a non-resident trust estate,

the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Part II of Schedule 13 or Part II of Schedule 15, as the case requires, if one individual were liable to be assessed and to pay tax on that income as his taxable income.

 

“SCHEDULE 17 Sub-sections 19 (1) and 21 (1)

RATES OF TAX PAYABLE ON ELIGIBLE TAXABLE INCOME—FINANCIAL YEAR 1984-85

PART I—RESIDENT TAXPAYERS

1. In the case of a resident taxpayer whose eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act exceeds $416, the rates of tax in respect of that part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part I of Schedule 13 or Part I of Schedule 15, as the case requires, if the relevant part of that taxable income were the taxable income of the taxpayer.

2. In the case of a resident taxpayer whose eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act exceeds $416, the rates of tax in respect of the eligible taxable income of the taxpayer are—

(a) in a case where the taxable income of the taxpayer does not exceed $28,000—46%;

(b) in a case where the taxable income of the taxpayer exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—47.33%; and

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000—47.33%;

SCHEDULE—continued

(c) in a case where the taxable income of the taxpayer exceeds $35,000 but does not exceed $35,788—

(i) if the relevant part of the taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%;

(b) in respect of the next $7,000 of the eligible taxable income of the taxpayer—47.33%; and

(c) in respect of the remainder of the eligible taxable income of the taxpayer—55.33%;

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of the taxable income of the taxpayer—47.33%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—55.33%; and

(iii) if the relevant part of the taxable income of the taxpayer is not less than $35,000—55.33%; and

(d) in a case where the taxable income of the taxpayer exceeds $35,788—

(i) if the relevant part of the taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%;

(b) in respect of the next $7,000 of the eligible taxable income of the taxpayer—47.33%;

(c) in respect of the next $788 of the eligible taxable income of the taxpayer—55.33%; and

(d) in respect of the remainder of the eligible taxable income of the taxpayer—60%;

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of the taxable income of the taxpayer—47.33%;

(b) in respect of the next $788 of the eligible taxable income of the taxpayer—55.33%; and

(c) in respect of the remainder of the eligible taxable income of the taxpayer—60%;

(iii) if the relevant part of the taxable income of the taxpayer is not less than $35,000 but is less than $35,788—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,788 the amount of the relevant part of the taxable income of the taxpayer—55.33%; and

SCHEDULE—continued

(b) in respect of the remainder of the eligible taxable income of the taxpayer—60%; and

(iv) in any other case—60%.

PART II—NON-RESIDENT TAXPAYERS

1. In the case of a non-resident taxpayer who has an eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act, the rates of tax in respect of that part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part II of Schedule 13 or Part II of Schedule 15, as the case requires, if the relevant part of that taxable income were the taxable income of the taxpayer.

2. In the case of a non-resident taxpayer who has an eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act, the rates of tax in respect of the eligible taxable income of the taxpayer are—

(a) in a case where the taxable income of the taxpayer does not exceed $28,000—46%;

(b) in a case where the taxable income of the taxpayer exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—47.33%; and

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000—47.33%;

(c) in a case where the taxable income of the taxpayer exceeds $35,000 but does not exceed $35,788—

(i) if the relevant part of the taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%;

(b) in respect of the next $7,000 of the eligible taxable income of the taxpayer—47.33%; and

(c) in respect of the remainder of the eligible taxable income of the taxpayer—55.33%;

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of the taxable income of the taxpayer—47.33%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—55.33%; and

(iii) if the relevant part of the taxable income of the taxpayer is not less than $35,000—55.33%; and

SCHEDULE—continued

(d) in a case where the taxable income of the taxpayer exceeds $35,788—

(i) if the relevant part of the taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%;

(b) in respect of the next $7,000 of the eligible taxable income of the taxpayer—47.33%;

(c) in respect of the next $788 of the eligible taxable income of the taxpayer—55.33%; and

(d) in respect of the remainder of the eligible taxable income of the taxpayer—60%;

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of the taxable income of the taxpayer—47.33%;

(b) in respect of the next $788 of the eligible taxable income of the taxpayer—55.33%; and

(c) in respect of the remainder of the eligible taxable income of the taxpayer—60%;

(iii) if the relevant part of the taxable income of the taxpayer is not less than $35,000 but is less than $35,788—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,788 the amount of the relevant part of the taxable income of the taxpayer—55.33%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—60%; and

(iv) in any other case—60%.

“SCHEDULE 18

Sub-sections 19 (3), (4) and 21 (3)

RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98 OF THE ASSESSMENT ACT WHERE DIVISION 6aa OF PART III OF THAT ACT APPLIES—FINANCIAL YEAR 1984-85

PART I—RESIDENT BENEFICIARIES

1. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share are the rates that would be payable under Part I of Schedule 13 or Part I of Schedule 15, as the case requires, in respect of a taxable income equal to the relevant part of that share if one individual were liable to be assessed and to pay tax on that income.

SCHEDULE—continued

2. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the eligible part of that share are—

(a) in a case where that share does not exceed $28,000—46%;

(b) in a case where that share exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%; and

(b) in respect of the remainder of the eligible part of that share—47.33%; and

(ii) if the relevant part of that share is not less than $28,000—47.33%;

(c) in a case where that share exceeds $35,000 but does not exceed $35,788—

(i) if the relevant part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%;

(b) in respect of the next $7,000 of the eligible part of that share—47.33%; and

(c) in respect of the remainder of the eligible part of that share—55.33%;

(ii) if the relevant part of that share is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of that share—47.33%; and

(b) in respect of the remainder of the eligible part of that share—55.33%; and

(iii) if the relevant part of that share is not less than $35,000—55.33%; and

(d) in a case where that share exceeds $35,788—

(i) if the relevant part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%;

(b) in respect of the next $7,000 of the eligible part of that share—47.33%;

(c) in respect of the next $788 of the eligible part of that share—55.33%; and

(d) in respect of the remainder of the eligible part of that share—60%;

(ii) if the relevant part of that share is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of that share—47.33%;

(b) in respect of the next $788 of the eligible part of that share—55.33%; and

(c) in respect of the remainder of the eligible part of that share—60%;

SCHEDULE—continued

(iii) if the relevant part of that share is not less than $35,000 but is less than $35,788—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,788 the amount of the relevant part of that share—55.33%; and

(b) in respect of the remainder of the eligible part of that share—60%; and

(iv) in any other case—60%.

PART II—NON-RESIDENT BENEFICIARIES

1. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share are the rates that would be payable under Part II of Schedule 13 or Part II of Schedule 15, as the case requires, in respect of a taxable income equal to the relevant part of that share if one individual were liable to be assessed and to pay tax on that income.

2. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the eligible part of that share are—

(a) in a case where that share does not exceed $28,000—46%;

(b) in a case where that share exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%; and

(b) in respect of the remainder of the eligible part of that share—47.33%; and

(ii) if the relevant part of that share is not less than $28,000—47.33%;

(c) in a case where that share exceeds $35,000 but does not exceed $35,788—

(i) if the relevant part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%;

(b) in respect of the next $7,000 of the eligible part of that share—47.33%; and

(c) in respect of the remainder of the eligible part of that share—55.33%;

(ii) if the relevant part of that share is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of that share—47.33%; and

(b) in respect of the remainder of the eligible part of that share—55.33%; and

(iii) if the relevant part of that share is not less than $35,000—55.33%; and

SCHEDULE—continued

(d) in a case where that share exceeds $35,788—

(i) if the relevant part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%;

(b) in respect of the next $7,000 of the eligible part of that share—47.33%;

(c) in respect of the next $788 of the eligible part of that share—55.33%; and

(d) in respect of the remainder of the eligible part of that share—60%;

(ii) if the relevant part of that share is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of that share—47.33%;

(b) in respect of the next $788 of the eligible part of that share—55.33%; and

(c) in respect of the remainder of the eligible part of that share—60%;

(iii) if the relevant part of that share is not less than $35,000 but is less than $35,788—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,788 the amount of the relevant part of that share—55.33%; and

(b) in respect of the remainder of the eligible part of that share—60%; and

(iv) in any other case—60%.

“SCHEDULE 19 Sub-section 23 (1)

GENERAL RATES OF TAX—FINANCIAL YEAR 1985-86 AND SUBSEQUENT FINANCIAL YEARS

PART I—RESIDENT TAXPAYERS

The rate of tax in respect of each part of the taxable income of a resident taxpayer specified in column 1 of the following table is:

(a) if a rate is set out in column 2 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 3 or 4 of that table opposite to that reference—the rate so set out in column 2;

(b) if a rate is set out in column 3 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 2 or 4 of that table opposite to that reference—the rate so set out in column 3; and

(c) in any other case—the sum of the rate set out in column 3 and the rate set out in column 4 of that table opposite to the reference to that part of the taxable income:

SCHEDULE—continued

Column 1

Column 2

Column 3

Column 4

Parts of Taxable Income

Rate per centum (reduced rate)

Rate per centum (standard rate)

Rate per centum (surcharge)

The part of the taxable income that—

exceeds $4,595 but does not exceed $12,500...................

25

Nil

Nil

exceeds $12,500 but does not exceed $19,500.................

Nil

30

Nil

exceeds $19,500 but does not exceed $28,000.................

Nil

30

16

exceeds $28,000 but does not exceed $35,000.................

Nil

30

18

exceeds $35,000.....................................................................

Nil

30

30

PART II—NON-RESIDENT TAXPAYERS

The rate of tax in respect of each part of the taxable income of a non-resident taxpayer specified in column 1 of the following table is:

(a) if a rate is set out in column 2 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 3 of that table opposite to that reference—the rate so set out in column 2; and

(b) in any other case—the sum of the rate set out in column 2 and the rate set out in column 3 of that table opposite to the reference to that part of the taxable income:

Column 1

Column 2

Column 3

Parts of Taxable Income

Rate per centum (standard rate)

Rate per centum (surcharge)

The part of the taxable income that—

does not exceed $19,500..............................................................................

30

Nil

exceeds $19,500 but does not exceed $28,000.........................................

30

16

exceeds $28,000 but does not exceed $35,000.........................................

30

18

exceeds $35,000.............................................................................................

30

30

 

“SCHEDULE 20 Sub-section 23 (2)

NOTIONAL RATES FOR THE PURPOSES OF SECTION 156 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1985-86 AND SUBSEQUENT FINANCIAL YEARS

PART I—RESIDENT TAXPAYERS, RESIDENT BENEFICIARIES AND RESIDENT TRUST ESTATES

Division 1Normal Notional Rate

1. This Division applies to the income of a resident taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if Division 16 of Part III of the Assessment Act applies in relation to that income.

SCHEDULE—continued

2. The notional rate in respect of income to which this Division applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Part I of Schedule 19 were applied to a taxable income equal to the taxpayer’s average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.

Division 2Notional Rates in respect of Certain Trust Income

1. This Division applies—

(a) to a share of a resident beneficiary of the net income of a trust estate, if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of that share; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that share; and

(b) to the net income or a part of the net income of a resident trust estate, if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income.

2. The notional rate in respect of income to which this Part applies is—

(a) in a case where the income is—

(i) a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act; or

(ii) the net income or a part of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act, being the net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

the rate that would be calculated in accordance with Division 1 if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act; and

(b) in any other case—the rate that would be calculated in accordance with Division 1 in respect of a taxable income equal to the income if—

(i) that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act; and

(ii) the reference in column 1 of the table in Part I of Schedule 19 to the part of the taxable income that exceeds $4,595 but does not exceed $12,500 were a reference to the part of the taxable income that does not exceed $12,500.

PART II—NON-RESIDENT TAXPAYERS, NON-RESIDENT BENEFICIARIES AND NON-RESIDENT TRUST ESTATES

Division 1Normal Notional Rate

1. This Division applies to the income of a non-resident taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if Division 16 of Part III of the Assessment Act applies in relation to that income.

2. The notional rate in respect of income to which this Division applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable

SCHEDULE—continued

if the rates set out in Part II of Schedule 19 were applied to a taxable income equal to the taxpayer’s average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.

Division 2Notional Rates in respect of Certain Trust Income

1. This Division applies—

(a) to a share of a non-resident beneficiary of the net income of a trust estate if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of that share; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that share; and

(b) to the net income or a part of the net income of a non-resident trust estate if—

(i) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate; and

(ii) Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income.

2. The notional rate in respect of income to which this Division applies is the rate that would be calculated in accordance with Division 1 in respect of a taxable income equal to the income if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act.

 

“SCHEDULE 21 Sub-section 23 (5)

RATES OF TAX BY REFERENCE TO A NOTIONAL INCOME—FINANCIAL YEAR 1985-86 AND SUBSEQUENT FINANCIAL YEARS

PART I—RESIDENT TAXPAYERS

For every $1 of the taxable income of a resident taxpayer deriving a notional income, as specified by section 59ab, 86 or 158d of the Assessment Act, the rate of tax is the amount ascertained by dividing the amount of tax that would be payable by the taxpayer under Part I of Schedule 19 upon a taxable income equal to the notional income of the taxpayer by the number of whole dollars in that notional income.

PART II—NON-RESIDENT TAXPAYERS

For every $1 of the taxable income of a non-resident taxpayer deriving a notional income, as specified by section 59ab, 86 or 158d of the Assessment Act, the rate of tax is the amount ascertained by dividing the amount of tax that would be payable by the taxpayer under Part II of Schedule 19 upon a taxable income equal to the notional income of the taxpayer by the number of whole dollars in that notional income.

   

SCHEDULE—continued

“SCHEDULE 22 Sub-section 23 (6)

RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98 OR 99 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1985-86 AND SUBSEQUENT FINANCIAL YEARS

PART I—RESIDENT BENEFICIARIES AND RESIDENT TRUST ESTATES

1. In the case of a trustee who is liable to be assessed and to pay tax—

(a) in pursuance of section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of a trust estate; or

(b) in pursuance of section 99 of the Assessment Act in respect of the net income or part of the net income of a resident trust estate, being the net income or part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Part I of Schedule 19 or Part I of Schedule 21, as the case requires, if one individual were liable to be assessed and to pay tax on that income as the taxable income of the individual.

2. In the case of a trustee who is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of the net income or part of the net income of a resident trust estate, other than income to which clause 1 applies, the rate of tax is the rate that would be payable under Part I of Schedule 19 or Part I of Schedule 21, as the case requires, in respect of a taxable income equal to that net income or that part of the net income if—

(a) one individual were liable to be assessed and to pay tax on that income; and

(b) the reference in column 1 of the table in Part I of Schedule 19 to the part of the taxable income that exceeds $4,595 but does not exceed $12,500 were a reference to the part of the taxable income that does not exceed $12,500.

PART II—NON-RESIDENT BENEFICIARIES AND NON-RESIDENT TRUST ESTATES

In the case of a trustee who is liable to be assessed and to pay tax—

(a) in pursuance of section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of a trust estate; or

(b) in pursuance of section 99 of the Assessment Act in respect of the net income or part of the net income of a non-resident trust estate,

the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Part II of Schedule 19 or Part II of Schedule 21, as the case requires, if one individual were liable to be assessed and to pay tax on that income as the taxable income of the individual.

 

“SCHEDULE 23 Sub-sections 24 (1) and 26 (1)

RATES OF TAX PAYABLE ON ELIGIBLE TAXABLE INCOME—FINANCIAL YEAR 1985-86 AND SUBSEQUENT FINANCIAL YEARS

PART I—RESIDENT TAXPAYERS

1. In the case of a resident taxpayer whose eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act exceeds $416, the rates of tax in respect of that part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be

SCHEDULE—continued

payable under Part I of Schedule 19 or Part I of Schedule 21, as the case requires, if the relevant part of that taxable income were the taxable income of the taxpayer.

2. In the case of a resident taxpayer whose eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act exceeds $416, the rates of tax in respect of the eligible taxable income of the taxpayer are—

(a) in a case where the taxable income of the taxpayer does not exceed $28,000—46%;

(b) in a case where the taxable income of the taxpayer exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—48%; and

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000—48%; and

(c) in a case where the taxable income of the taxpayer exceeds $35,000—

(i) if the relevant part of the taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%;

(b) in respect of the next $7,000 of the eligible taxable income of the taxpayer—48%; and

(c) in respect of the remainder of the eligible taxable income of the taxpayer—60%;

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of the taxable income of the taxpayer—48%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—60%; and

(iii) in any other case—60%.

PART II—NON-RESIDENT TAXPAYERS

1. In the case of a non-resident taxpayer who has an eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act, the rates of tax in respect of that part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part II of Schedule 19 or Part II of Schedule 21, as the case requires, if the relevant part of that taxable income were the taxable income of the taxpayer.

2. In the case of a non-resident taxpayer who has an eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act, the rates of tax in respect of the eligible taxable income of the taxpayer are—

(a) in a case where the taxable income of the taxpayer does not exceed $28,000—46%;

SCHEDULE—continued

(b) in a case where the taxable income of the taxpayer exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—48%; and

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000—48%; and

(c) in a case where the taxable income of the taxpayer exceeds $35,000—

(i) if the relevant part of the taxable income of the taxpayer is less than $28,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of the taxable income of the taxpayer—46%;

(b) in respect of the next $7,000 of the eligible taxable income of the taxpayer—48%; and

(c) in respect of the remainder of the eligible taxable income of the taxpayer—60%;

(ii) if the relevant part of the taxable income of the taxpayer is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible taxable income of the taxpayer as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of the taxable income of the taxpayer—48%; and

(b) in respect of the remainder of the eligible taxable income of the taxpayer—60%; and

(iii) in any other case—60%.

 

“SCHEDULE 24Sub-sections 24 (3), (4) and 26 (3)

RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98 OF THE ASSESSMENT ACT WHERE DIVISION 6aa OF PART III OF THAT ACT APPLIES—FINANCIAL YEAR 1985-86 AND SUBSEQUENT FINANCIAL YEARS

PART I—RESIDENT BENEFICIARIES

1. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share are the rates that would be payable under Part I of Schedule 19 or Part I of Schedule 21, as the case requires, in respect of a taxable income equal to the

SCHEDULE—continued

relevant part of that share if one individual were liable to be assessed and to pay tax on that income.

2. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the eligible part of that share are—

(a) in a case where that share does not exceed $28,000—46%;

(b) in a case where that share exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%; and

(b) in respect of the remainder of the eligible part of that share—48%; and

(ii) if the relevant part of that share is not less than $28,000—48%; and

(c) in a case where that share exceeds $35,000—

(i) if the relevant part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%;

(b) in respect of the next $7,000 of the eligible part of that share—48%; and

(c) in respect of the remainder of the eligible part of that share—60%;

(ii) if the relevant part of the share is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of that share—48%; and

(b) in respect of the remainder of the eligible part of that share—60%; and

(iii) in any other case—60%.

PART II—NON-RESIDENT BENEFICIARIES

1. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share are the rates that would be payable under Part II of Schedule 19 or Part II of Schedule 21, as the case requires, in respect of a taxable income equal to the relevant part of that share if one individual were liable to be assessed and to pay tax on that income.

2. In the case of a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of the trust estate where Division 6aa of Part III of that Act applies to a part (in this clause referred to as the ‘eligible part’) of that share, the rates of tax in respect of the eligible part of that share are—

(a) in a case where that share does not exceed $28,000—46%;

SCHEDULE—continued

(b) in a case where that share exceeds $28,000 but does not exceed $35,000—

(i) if the part (in this clause referred to as the ‘relevant part’) of that share other than the eligible part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%; and

(b) in respect of the remainder of the eligible part of that share—48%; and

(ii) if the relevant part of that share is not less than $28,000—48%; and

(c) in a case where that share exceeds $35,000—

(i) if the relevant part of that share is less than $28,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $28,000 the amount of the relevant part of that share—46%;

(b) in respect of the next $7,000 of the eligible part of that share—48%; and

(c) in respect of the remainder of the eligible part of that share—60%;

(ii) if the relevant part of that share is not less than $28,000 but is less than $35,000—

(a) in respect of so much of the eligible part of that share as is equal to the amount ascertained by deducting from $35,000 the amount of the relevant part of that share—48%; and

(b) in respect of the remainder of the eligible part of that share—60%; and

(iii) in any other case—60%.”.

NOTE

1. No. 105, 1982, as amended. For previous amendments, see Nos. 15 and 104, 1983.

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